Confidence Returns: Why We’re Bullish on the 2025 Deal Market
After months of cautious headlines, investor sentiment is firmly back in bullish territory. The recent U.S.-China trade truce and a nearly 3% jump in the S&P 500 have helped shift market psychology—and with it, private equity dealmaking. With $1.2 trillion in dry powder and hold periods pushing seven years, firms are under real pressure both to deploy capital and to exit aging investments. BDO projects a 20% rise in exits this year, and with 29,000 unsold portfolio companies valued at $3.6 trillion, we’re entering a window of accelerated deal flow. For owners, the takeaway is clear: this is not the time to wait on the sidelines. With strategic and financial buyers increasingly active, and valuations holding strong, the current M&A environment should be seized—before the next cycle cools the market again.Deal Activity
Growthink Capital Research tracked 1,995 closed M&A transactions with U.S. targets in March and April 2025, a slight increase from 1,962 transactions in January and February. This also represents a 13% increase over the 2024 average. Among these, 54% of the deals were carried out by corporate buyers continuing to expand via strategic acquisitions, while 46% were private equity-backed acquisitions.
Considering a Sale in 2025? Let’s Talk.
Whether you are pursuing a sale of your company, liquidity for shareholders, or growth-by-acquisition opportunities, we should speak. You can arrange a meeting with us by submitting a form here or calling us at (213)927-3968.Key Industries & Verticals
- Top industries: Commercial Services, Enterprise Software, Media & Information Services, Construction & Engineering, and Financial Services
- Top verticals: Manufacturing, SaaS, AI, TMT, and Industrials – representing 30% of total transactions.
Revenue and Earnings Multiples
From reported transactions disclosing valuation details, median revenue valuation multiples stood at 2.1x, while median EBITDA valuation multiples reached 13.4x (excluding negative EBITDA companies), indicating that valuation multiples remain elevated across the market.
Growthink Capital’s Deal Spotlight: Why 2025 Is a Seller’s Market
Eaton (NYSE: ETN), the intelligent power management company, acquired Fibrebond for $1.45 billion in April 2025—paying 3.8x revenue ($378 million) and 13.2x EBITDA ($110 million). Based in Louisiana, Fibrebond manufactures custom-engineered, pre-integrated modular enclosures used in data centers, utilities, and industrial settings. The deal adds serious operational depth and speed to Eaton’s power infrastructure offering, particularly in high-growth markets where scale and modular deployment are key.
“This is a game-changing move that positions Eaton as a one-stop shop to rapidly deploy power infrastructure where it’s needed,” said Mike Yelton, President of Eaton’s Americas Electrical Sector. “Their engineered-to-order power enclosures and service capabilities enhance our offerings, allowing us to move faster for our data center, industrial, utility, and other customers.”
Why Does This Matter?
Eaton’s $1.45 billion acquisition of Fibrebond is a clear signal: strategic buyers are actively seeking businesses with specialized capabilities that solve complex, operationally critical problems. Fibrebond’s modular enclosures aren’t just products—they’re engineered solutions for high-demand environments like data centers and utilities. That kind of differentiation—paired with solid EBITDA—drew a premium multiple. For lower-middle market owners, the lesson is clear: businesses with focus, technical know-how, and defensible value are in demand. If your company delivers real-world solutions in sectors where precision and reliability matter, now is the time to explore your options. ➡ If You CAN Sell Your Business in 2025, You SHOULD.Meet the Team
In this issue, we’re spotlighting Eddie Clay through a notable transaction he led: the sale of Inworks—a fintech accounts
payable automation platform focusing on healthcare—to Paymerang, a financial automation leader. Growthink ran parallel capital raising and M&A processes, ultimately introducing Paymerang as a strategic acquirer, who valued InWorks at a multiple of revenue.
The transaction combined Inworks’ Intelligent Pay platform with Paymerang’s offering to create the most comprehensive ePayables solution in healthcare.
Eddie brings over two decades of M&A and alternative investment experience, including roles at Goldman Sachs, Option Group, and Philip Roman & Co. He holds a degree from West Point and an
MBA from Stanford, and has spent the last nine years as a Director at Growthink Capital.
“Now that the dust is starting to settle on the new U.S. global trade policy and with the improving macroeconomic backdrop (good economy, moderating inflation, upcoming interest rate cuts, and government de-regulation), we expect M&A deal activity to spike later this year as the markets receive further clarity on tariffs and more trade agreements are negotiated. This shift in sentiment will inspire company sellers and buyers to re-engage with high conviction and urgency, leading to strong deal valuations and faster closings.”
-Eddie Clay, Director of Institutional Relationships, Growthink Capital
Largest Transaction of the Period – xAI acquires X
In March 2025, xAI acquired X (formerly Twitter) in an all-stock deal valued at $33 billion, supported by $12.5 billion in debt financing—marking the largest transaction of the quarter. Elon Musk originally acquired Twitter in 2022 for $44 billion and rebranded it as X, with ambitions to transform it into an “everything app.” This latest move formally folds X under the xAI umbrella, consolidating Musk’s AI and social assets into a single operating entity. Beyond streamlining governance and ownership, the integration gives xAI full access to X’s real-time data and distribution network—fuel for its Grok AI models.
Analysts estimate the combined entity could now be worth well over $100 billion, positioning it as a uniquely situated platform at the intersection of public discourse and artificial intelligence.
The Oldest Transaction – Sandy Spring Bancorp (Founded 1867)
Atlantic Union Bank (NYSE: AUB) completed the acquisition of Sandy Spring Bancorp (Nasdaq: SASR), founded in 1867, in April 2025 for $1.6 billion in stock. Each Sandy Spring share was converted into 0.900 shares of Atlantic Union, combining two well-established regional players. At the time of the acquisition, Sandy Spring operated 55 branches and 6 financial centers, serving the Washington metropolitan area. The deal creates the largest regional bank headquartered in the lower Mid-Atlantic and strengthens Atlantic Union’s footprint in Northern Virginia and Maryland.
Growthink Capital’s New Mandates – Strategic Roll-Up of Professional Services Firms
We’ve been engaged by a global professional and business services enterprise to identify bookkeeping/accounting/tax firms for strategic acquisition. The goal is to continue scaling their tech-enabled platform by expanding core service capabilities, unlocking operational efficiencies, and accelerating long-term value creation. Target criteria:- Over $10 million in annual revenue
- Primarily B2B, servicing small to mid-sized business clients
- U.S.-based
If you’re interested in exploring this acquisition opportunity, contact us here or reach out to [email protected] To explore M&A alternatives for your business – whether that be pursuing a sale of the company, liquidity for shareholders, or growth-by-acquisition opportunities – please get in touch by completing this form or calling us at (213) 927-3968. Securities transactions are conducted through GT Securities, Inc. Member FINRA/SIPC. Nothing in this article should be regarded as an offer to sell or a solicitation of an offer to buy any Investment.